Dollar Thrifty Automotive Group Inc.’s shareholders rejected Hertz Global Holdings Inc.’s $1.46 billion takeover offer a day after Avis Budget Group Inc. added a breakup fee to its higher bid.
The vote at the special meeting in Chicago today was about 13.8 million shares against the Hertz bid, versus 11.8 million shares in favor.
The rejection may mean the end of Hertz’s attempt to add the Dollar and Thrifty rental-car brands to its namesake service. Hertz said yesterday it would immediately terminate its agreement with Dollar Thrifty if shareholders voted against the proposal.
Avis yesterday sweetened its $1.53 billion offer with a $20 million breakup fee that Dollar Thrifty for weeks had asked it to add in case the proposal doesn’t win regulatory approval. Dollar Thrifty’s board had cited the lack of such a fee in rejecting the offer.
Avis said this week that it would commence an exchange offer on its most recent terms if Dollar Thrifty declined to postpone the meeting and shareholders rejected Hertz.
Dollar Thrifty rose 65 cents, or 1.3 percent, to $50.75 at 2:39 p.m. in New York Stock Exchange composite trading. Park Ridge, New Jersey-based Hertz fell $1.02, or 8.8 percent, to $10.59. Parsippany, New Jersey, based Avis rose 33 cents, or 2.9 percent, to $11.85.
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